The central government employees who are awaiting a pay raise have been given a major update. People were hoping that the 8 th Pay Commission implementation would not take place at all because the government was supposed to combine Dearness Allowance (DA) with their basic salary. The government has now reacted to this issue officially.
Government’s Written Reply
A written response by Minister of State Finance on the merging of DA and Dearness Relief (DR) was given in the Rajya Sabha.
He ensured that there is no intention of the government to combine DA with the basic pay or pension prior to the establishment of the 8 th Pay Commission.
- DA is now updated twice a year-
- During the first half of January to June, and
- Second from July to December.
These amendments are based on the data of All India Consumer Price Index (AICPI), which is a tool that tracks the fluctuations in inflation and cost of living.
The reason why the DA Merger was necessary.
Anytime that DA exceeds 50, the employees insist that it be included into the basic remuneration. Currently, employees are getting 53% DA under the 7 th Pay Commission.
It is easy to understand because combining DA into the basic pay will result in an increment on his salary and subsequent benefits, including the House Rent allowance (HRA) going up, travel allowance and the pension.
In previous pay commissions, where DA was more than 50 percent then it was added to the basic pay to form a new pay structure. It is because this time employees and pensioners have been anticipating a similar move.
Present State of Affairs and Prospects.
The government has however clarified that there will be no DA merger this year, despite the over one crore plus employees and pensioners demanding it.
No decision will be made in relation to merger or a new system of salaries unless the recommendations of the 8th Pay Commission are prepared and accepted.